Telco Earmarks $1B for Network Expansion

Driven by a global surge in data, voice and video traffic, AT&T officials said March 5 they plan to invest $1 billion to expand the company’s international networks. The investment more than doubles AT&T’s 2006 enterprise investment and represents a 33 percent increase over 2007 spending.

AT&T said the $1 billion would be used to extend the company’s global network reach and capacity with embedded utility computing.

“Companies worldwide are responding to the exploding need to deliver voice, data and video in real time to their end-users, no matter where they are, no matter what the device,” Ron Spears, group president of AT&T Global Business Services, said in a statement.

Key among AT&T’s investments is new sub-sea fiber optic cable capacity to Japan and Asia, particularly along key routes into Southeast Asia and Australia. AT&T also plans to upgrade capacity on undersea cable routes in the Caribbean, India and the Middle East.

AT&T also plans to install new core MPLS routers in Europe, Asia and the United States, in addition to new or additional MPLS-based IP network access nodes in Europe (Paris, Moscow), the Middle East (Kuwait), India (New Delhi, Kolkata), Japan, Asia (Seoul, Shanghai, Singapore), and Central America (Guatemala).

In addition, AT&T said it will roll out enhanced Ethernet network capabilities with a global virtual private local area network initially focused in the United States, Europe and Asia Pacific. The company also plans to add DSL service as an emerging access alternative to China, Finland, Norway and Saudi Arabia.

“It is vital that we continue to invest in those geographies and services to meet this demand so our customers can connect their operations, partners and suppliers,” Spears said.